Bharti Airtel Q4 preview: Strong operating performance seen; ARPU may fall

Bharti Airtel is set to announce its March quarter results of FY21 (Q4FY21) on Monday amid expectations of a strong operating print and a moderation in average revenue per user (ARPU) with interconnect usage charge (IUC) going to zero. Analysts will keep a keen eye on the management’s commentary on ARPU trajectory and non wireless business.

For the entire telecom sector as well, Emkay expects the zero IUC regime to distort headline numbers and a decline in ARPU. Bharti was a net-payer of IUC while Jio and Vodafone Idea were net receivers on Ebitda level.